A few years ago, Dubai World floated an Islamic bond (Sukuk) to acquire the British port company P&O. The results of that acquisition and the methodology became part of the subsequent default and bailout of Dubai World’s sukuk portfolio.
What the article linked below alludes to without coming right out and saying it, is the Sukuk method of financing is disadvantaged in key ways. Perhaps most importantly, the fees and costs associated with Sukuk are greater than those of conventional financing instruments. And, as has been pointed out all along by critics of Shariah Finance in general, disclosure and transparency in Sukuk transactions is no where near what is required for conventional, regulated financing arrangements in the US.
Perhaps this is why the default rate on Sukuk is reportedly higher than that of conventional bonds.